Brenntag wants to expand its global market leadership in the chemical distribution sector. Therefore you start a transformation program. 100 locations worldwide are to be closed and around 1,300 employees are to leave the company. Brenntag currently has 650 locations and 17,500 positions. The partnership with customers and suppliers is to be intensified. The aim is to increase EBITDA by 220 million euros annually from 2023. The program will cost 370 million euros.
The earnings target is above the expectations of the analysts at Independent Research. They continue to forecast earnings per share of EUR 2.88 for 2020. In 2021 it should be 3.25 euros. The measures therefore have no impact on the figures in the short term. The dividend yield is just over 2 percent.
As before, the experts are recommending a hold for Brenntag shares. The price target will be increased from EUR 55.00 to EUR 61.00.
The Brenntag share reached an all-time high of almost EUR 59 yesterday. Over the course of the year, the share gained almost 18 percent. Today the paper loses 2.7 percent to 55.50 euros. Before the measures were announced, a share cost around 54 euros.